Bengaluru-based real estate major, Brigade Enterprises, expects its FY-25 residential launches to see an average pricing of ₹10,000/sqft.
The projection comes even as the company has launched its premium-luxury mixed-use project on Chennai's iconic Mount Road, Brigade Icon.
Brigade has also announced an investment of ₹8,000 crore to build 15 million square feet of real estate in Chennai by 2030.
A large part of that upward shift is courtesy of launches like Brigade Icon, with premium price tags.
However, Pavitra said Brigade would adopt a wait-and-watch approach before planning real estate development in the new city.
Bengaluru-based real estate major, Brigade Enterprises, expects its FY-25 residential launches to see an average pricing of ₹10,000/sqft. The projection comes even as the company has launched its premium-luxury mixed-use project on Chennai's iconic Mount Road, Brigade Icon. When completed, the 38-storey structure is easily expected to be among the taller buildings in Chennai."We are looking at a price of somewhere above ₹20,000 per square foot for Brigade Icon, and that's just a conservative estimate," said Pavitra Shankar, Managing Director at Brigade Enterprises, in conversation with CNBC-TV18. "We will be launching 200 apartments including penthouses at the project, and expect to have a Gross Development Value of ₹1,800 crore," she added.Brigade made headlines in early 2022 when it procured a 5.5-acre land bank on Chennai's iconic Mount Road from the TVS Group, for approximately ₹550 crore. Reports of a a large-scale mixed-use development in the works, on this land parcel, began doing the rounds when the land purchase was executed. The launch of Brigade Icon has confirmed these reports.On completion of the project, Chennai will become Brigade's second-largest market in India — the developer has presence in the South with its residential, office, hospitality and retail projects in Bengaluru, Hyderabad and Chennai. Brigade has also announced an investment of ₹8,000 crore to build 15 million square feet of real estate in Chennai by 2030. The Gross Development Value from the company's overall residential portfolio in Chennai is approximately ₹13,000 crore.Brigade has said it expects its overall residential portfolio to go north of ₹9,000/sqft in average weighted price this fiscal. A large part of that upward shift is courtesy of launches like Brigade Icon, with premium price tags. The management also expects to sustain its present-day revenue growth. "We have been growing our revenue between 18 and 20 percent year-on-year, we are aiming for a 15 to 20% growth rate in the residential business, this fiscal," said Pavitra.The company has earmarked ₹1,000 to ₹1,500 crore towards land acquisition this fiscal. Pavitra told CNBC-TV18 that the company is looking at a combination of joint developments and outright purchase of land banks, with specific focus on the Hyderabad and Chennai markets. "We want Hyderabad and Chennai to account for a larger part of our portfolio," she said, "Bengaluru presently contributes 90%to our residential sales — but we expect that share to come down to about 65% in the next five years, with Chennai and Hyderabad making up for the rest."Incidentally, the announcement of Amaravati as the full-time capital of Andhra Pradesh by the recently formed TDP Government has evoked interest in the real estate market. However, Pavitra said Brigade would adopt a wait-and-watch approach before planning real estate development in the new city. "Andhra Pradesh is the only South Indian state where we don't have presence, and we want to see some traction on the ground before we jump into developments in Amaravati," she said."The potential to grow is an important factor we look at before deciding to get into a new market," Pavitra added, "So, we will continue to keep an eye on Amaravati before we take a decision on whether to invest there — we want some comfort and certainty before we place a bet on the new capital city."
